How expensive is Silicon Valley?
Housing is most of what makes Silicon Valley expensive. Zillow's typical home value for the San Jose metro was $1,523,615 in September 2026. The Census Bureau's 2020-2024 American Community Survey puts Santa Clara County's median gross rent at $2,857 a month and the median monthly cost for owners with a mortgage at $4,001, figures that lag current prices because they average five years.
Incomes are high too. The same survey puts the county's median household income at $164,281. MIT's living wage calculator, updated February 15, 2026, estimates that one adult with no children needs $79,043 a year before tax to cover basic costs in Santa Clara County, and that a household of two working adults and two children needs $201,397. Those are floors for basic needs, not comfortable budgets, and they assume renting.
Costs vary a lot inside the valley. Zillow's observed rent in September 2026 ranged from $3,099 in Gilroy to $6,886 in Los Altos, and its typical home value from $1,044,931 in Gilroy to $4,591,005 in Los Altos.
Housing costs in Silicon Valley
Buying a home in Silicon Valley: the monthly payment
At the Freddie Mac average rate of 7.24% in the week of October 29, 2026, the metro typical value of $1,523,615 with 20% down means a loan of $1,218,892 and principal and interest of about $8,307 a month. Property tax at San Jose's 1.204% rate adds about $1,522 a month, so the total before insurance is close to $9,830. For a Santa Clara County condo at Redfin's September 2026 median of $667,393, principal and interest would be about $3,639 and tax about $663, plus HOA dues.
Renting in Silicon Valley
Zillow's observed rent index, which covers houses, condos and apartments, was $3,582 a month in San Jose in September 2026, 7.5% higher than a year earlier. It was $3,958 in the city of Santa Clara, $3,972 in Sunnyvale, $4,535 in Mountain View and $4,558 in Palo Alto. Rents rose faster than home values over the year in most of these cities.
Property tax in Silicon Valley
Under Prop 13, tax is about 1% of your purchase price plus voter-approved bonds. The County of Santa Clara's 2025-26 rate book gives totals of 1.20400% in San Jose area 017-090, 1.19745% in Palo Alto 006-001, 1.16910% in Sunnyvale 009-002, 1.15600% in Mountain View 005-000 and 1.14200% in Los Gatos 003-000. A $7,000 homeowners' exemption lowers the taxable value of a primary home. Parcel taxes for schools and other districts are added on the bill. See our Santa Clara County property tax guide for the full rules.
Homeowners and earthquake insurance in Silicon Valley
We could not verify a reliable average premium for the region, so get two or three quotes for the specific address before you commit. Standard policies exclude earthquake damage; the California Earthquake Authority sells cover through participating insurers. Our homeowners insurance guide and earthquake insurance guide explain what to compare.
HOA dues and Mello-Roos in Silicon Valley
Condos and many townhouses carry monthly HOA dues, which vary by building. Newer subdivisions may carry special taxes; check the tax bill and read our Mello-Roos guide.
Everyday costs in Silicon Valley
MIT's calculator gives typical annual costs in Santa Clara County for basic needs. For one adult with no children: food $5,036, medical $3,651, transportation $10,808, internet and mobile $1,882 and other necessities $4,992. For two working adults with two children: food $14,738, child care $46,772, medical $13,039 and transportation $18,129.
Electricity and gas in Silicon Valley
PG&E delivers power and gas in most of the valley. Silicon Valley Clean Energy supplies the electricity in 13 communities: Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and unincorporated Santa Clara County. Customers there still get one combined monthly bill from PG&E. Palo Alto, Santa Clara and San Jose are not on that list; check the city's own utility or energy program for those addresses.
Food and groceries in Silicon Valley
MIT's food budget of $5,036 a year for one adult works out to about $420 a month, and $14,738 a year for a household of four is about $1,228 a month. These are basic grocery budgets; eating out costs more.
Getting around Silicon Valley: Caltrain, VTA and driving
Caltrain's adult one-way fare is $4.00 for one zone and $2.25 for each added zone, and its monthly passes run from $96 for one zone to $366 for six. Fares for two or more zones rise on January 1, 2027, when each added zone costs $2.50. A VTA bus or light rail single ride is $2.50 for adults, with two hours of free transfers on Clipper. MIT's transportation budget of $10,808 a year for one adult assumes car ownership.
Health care and child care in Silicon Valley
MIT estimates $3,651 a year in medical costs for one adult and $13,039 for a family of four. Child care is the largest single item for a working family in its model: $46,772 a year for two children.
Internet and phone in Silicon Valley
MIT budgets $1,882 a year for internet and mobile for one adult, about $157 a month. Ask the seller or landlord which providers serve the address before you move.
Taxes in Silicon Valley
Sales tax is among the highest in California. The CDTFA's rates effective October 1, 2026 are 10.500% in Campbell, 10.000% in San Jose and Milpitas, 9.875% in Los Gatos and 9.750% in Cupertino, Palo Alto, Mountain View, Sunnyvale, Santa Clara, Saratoga, Los Altos and the unincorporated county. California's income tax applies statewide, and property tax is covered above. Our California cost of living guide compares taxes across the state.
Salary needed to live in Silicon Valley
MIT's living wage figures for Santa Clara County are the pre-tax income a household needs to cover basic costs while renting, with no savings.
| Household | Hourly living wage | Annual income before tax |
|---|---|---|
| 1 adult, no children | $38.00 | $79,043 |
| 1 adult, 1 child | $69.42 | $144,399 |
| 2 adults (1 working), 2 children | $61.42 | $127,760 |
| 2 adults (both working), 2 children | $48.41 each | $201,397 |
Buying is a different calculation. Payments of about $9,830 a month on the metro typical home, before insurance, come to about $118,000 a year. A lender limiting housing costs to about a third of gross income would look for roughly $350,000 a year, plus the $304,723 down payment. Those are our estimates from the figures above, not a lender's quote.
Silicon Valley cost of living by city
Zillow figures for September 2026, with the CDTFA sales tax rate.
| City | Zillow typical home value | Zillow observed rent | Sales tax |
|---|---|---|---|
| Gilroy | $1,044,931 | $3,099 | 9.750% |
| Morgan Hill | $1,316,319 | $3,797 | 9.750% |
| San Jose | $1,353,869 | $3,582 | 10.000% |
| Milpitas | $1,385,691 | $3,614 | 10.000% |
| Santa Clara | $1,642,638 | $3,958 | 9.750% |
| Campbell | $1,837,614 | $3,433 | 10.500% |
| Mountain View | $1,929,681 | $4,535 | 9.750% |
| Sunnyvale | $2,007,452 | $3,972 | 9.750% |
| Los Gatos | $2,597,611 | $4,004 | 9.875% |
| Cupertino | $2,957,922 | $4,307 | 9.750% |
| Palo Alto | $3,592,240 | $4,558 | 9.750% |
| Saratoga | $3,974,406 | $6,140 | 9.750% |
| Los Altos | $4,591,005 | $6,886 | 9.750% |
For city detail, see our guides to the cost of living in San Jose and the cost of living in Palo Alto.
Ways to lower your costs in Silicon Valley
- Look south or east. Gilroy, Morgan Hill, Milpitas and east and south San Jose have the valley's lowest typical home values.
- Consider a condo or townhouse. Redfin's county condo median of $667,393 in September 2026 was about a third of the single-family median.
- File the homeowners' exemption on a primary home, and check school parcel taxes for a senior exemption if you qualify.
- Use a Caltrain or VTA pass instead of a second car if your commute fits a rail line.
- Compare insurance every year, and price earthquake cover separately.
- Check the tax rate area before you buy: two houses at the same price can differ by thousands of dollars a year.
Our Silicon Valley homes for sale guide compares prices by city.